India gets $125 million loan from ADB

CHENNAI: The Government of India and the Asian Development Bank (ADB) inked a $125 million loan agreement in order to build climate-resilient sewage collection and treatment, drainage and water supply systems in three cities in Tamil Nadu – Coimbatore, Madurai, and Thoothukudi.

Rajat Kumar Mishra, Additional Secretary, Department of Economic Affairs, Ministry of Finance signed the tranche 3 loan for Tamil Nadu Urban Flagship Investment Program from the Indian side whereas Ho Yun Jeong, Officer-in-Charge of ADB’s India Resident Mission signed the loan from ADB’s side. The ADB finance will aid in ensuring that all people have access to fundamental water and sanitation facilities as well as enhancing flood resilience in the project’s target districts, which are also the state’s industrial centers.

According to Jeong, by implanting fresh strategies like the build-and-operate modality, automatic metres for large water users, and real-time monitoring via supervisory control systems, ADB is continuing to support the development and improvement of urban services in the state.

He also said that ADB’s urban investments are coordinated to help Tamil Nadu’s development of critical industrial corridors. In Coimbatore and Madurai, two all-female self-help groups will be trained on the benefits of household connection to the sewage collection system, water conservation, sanitation, and health.

The programme, which was approved by ADB in 2018 and is intended to build high-priority water supply, sewerage, and drainage infrastructure in key industrial corridors throughout ten cities in the state, will now receive the third and final instalment of its $500 million multi-tranche financing facility (MFF).